Justin Sun continues to make headlines as he takes shots at Ethereum and EOS once again.
The TRX market is holding relatively strong support around the $0.013 but needs to break above $0.016 before we can consider a bullish market.
Support moving forward: $0.013361, $0.012, $0.01123, $0.010, $0.009766, $0.00800, $0.007625, $0.006866
Resistance moving forward: $0.01484, $0.01626, $0.018, $0.01957, $0.022, $0.02320, $0.02510, $0.02695.
Latest TRON News
The rockstar like CEO of Tron, Justin Sun, has continued to take more shots at both Ethereum and EOS recently as he announced his intention to create a fund for decentralized app developers under the condition that they choose to migrate their dapps to the TRON network.
— Justin Sun (@justinsuntron) December 7, 2018
Sun mentioned that he wanted to “save” developers from their relative sinking projects as he believes that the TRON network provides a much better environment for developers to work with.
In some aspects, Sun may be correct. With the increased capability for a higher transaction per second speed and lower fees, the TRON network may provide a better opportunity than its rival decentralized operating systems.
The Tron network also allows developers to develop in common coding languages such as Java, whereas developers on the Ethereum network, for example, need to learn a specific coding language known as Solidity to be able to develop their dapps.
To add to the “pro” column for Tron, developers who chose to migrate from Ethereum to TRON will have minimal trouble in doing so as the TRON Virtual Machine (TVM) is compatible with the Ethereum Virtual Machine (EVM). Thus, Ethereum dapp developers can experience a seamless migration.
However, Sun’s Tweet did not come without any response.
EOS New York promptly replied to Justin Sun’s Tweet with the following:
We think we will be just fine given the billion dollars in VC funding for #EOS and #EOSIO projects that is locked and loaded around the world at Galaxy, SVK Crypto, Tomorrow, etc. Appreciate the offer, though. Best of luck, Justin. @block_one_ @SVK_Crypto @tomorrowbc
— EOS New York (@eosnewyork) December 7, 2018
Tron had also recently released their weekly dapp report which showed that the number of dapps on the Tron blockchain has increased to 28.
The entire ecosystem has now reached around 4,000 daily active users and have reached a new high of daily transactions which exceeds 700,000. TRON dapp usage is mainly dominated by gaming/gambling dapps but the data is likely to change when the statistics from the Tronscan DEX is accounted for.
Let us continue to analyze price action over the short term and highlight any areas of potential support and resistance to watch out for.
TRX Price Analysis
The TRON market has seen a small 0.3% increase in price over the past 24 hours of trading as the cryptocurrency now is exchanging hands at a price around $0.0136, at the time of writing.
The market has seen a rather muted price decline totaling 6% over the past 7 trading days which could be a sign that the previous bearish trend, which saw TRX fall by a total of 41% over the previous 30-day period, has started to show some form of stabilization.
The Tron project has now joined the top 10 by market cap as it sits in 10th position with a total market cap value of $892 million.
Analyzing TRX/USD price action from the short-term perspective above, we can see the severity of the TRX/USD decline during November 2018 as price action fell by a total of 55% from high to low.
The downtrend found an area of support provided by a medium-term downside 1.618 Fibonacci Extension level (drawn in purple) priced at $0.011230.
As the market reached this area of support, the market had rebounded and began to rise until reaching resistance at the bearish .382 Fibonacci Retracement level (Drawn in red) priced at $0.01637 before rolling over once again.
Price action for TRX/USD is now trading at support provided by the previous downside 1.414 Fibonacci Extension level (drawn in purple) priced at $0.01336, as the market decides which direction to head toward next.
Trend: Neutral Until a Break Above $0.016 (Bullish) or Below $0.011 (Bearish)
Since rebounding from the aforementioned support, the market has consolidated and began to trade sideways.
The trend is now neutral until the market can either break above the previous resistance level at $0.016 for a bullish breakout, or if the market breaks below previous support at $0.011 this would lead to a bearish continuation of the previous downtrend.
Where is the Support for TRX/USD Below $0.011?
If the market does eventually penetrate below the $0.011 handle, we can expect immediate support beneath to be located at the long-term downside 1.272 Fibonacci Extension level (drawn in red) priced at $0.009766.
If the sellers continue to drive price action lower, we can then expect more support beneath to be located at the short-term downside 1.272 and 1.414 Fibonacci Extension levels (drawn in blue), priced at $0.00800 and $0.007625 respectively.
The final level of support beneath to highlight is located at the long-term downside 1.414 Fibonacci Extension level (drawn in red) priced at $0.006866.
What If the TRX/USD Market Starts to Move Upward?
If the buyers regroup and start to push TRX/USD higher from the support at $0.013, we can expect immediate resistance above to be located at the previous downside 1.272 Fibonacci Extension level (drawn in purple) priced at $0.01484.
Further resistance above this will then be located at the bearish .382 FIbonacci Retracement level (drawn in red) priced at $0.01637.
If TRX/USD continues to climb even higher, then we can expect more resistance above to be located at the bearish .618 Fibonacci Retracement level priced at $0.0197, followed by further resistance around $0.021.
Justin Sun is a very adept marketer who knows how to promote his project very well and get under the skin of his rivals. His latest proposal is another addition to a long list of attacks he has made on his rival blockchains.
The TRON market has held up relatively well during November 2018 compared to Ethereum and EOS. However, the market has still a significant amount to recover to get back to where it was before the market collapse.
If we would like to see a recovery in TRX/USD, we would need to see the market break above $0.016 before it can climb any higher.